HSBC plans six-year contingent income barrier notes linked to Russell

By Susanna Moon

Chicago, Feb. 5 – HSBC USA Inc. plans to price contingent income barrier notes due March 1, 2021 linked to the Russell 2000 index, according to an FWP filed with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of 6.25% to 6.75% if the index closes at or above the 70% coupon barrier level on the determination date for that quarter.

If the index finishes at or above the 70% trigger level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent.

The notes will price on Feb. 20 and settle on Feb. 27.

The Cusip number is 40433BYR3.

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